Xcel Energy‘s planned departure from coal-fired power generation is a central point of contention in ongoing North Dakota electric rate case proceedings, potentially impacting customer bills across the state. Public hearings began October 3, 2023, and are expected to conclude quickly, according to state Public Service Commissioner Julie Fedorchak.
The rate case, which affects approximately 235,000 North Dakota customers of Xcel Energy, centers on the company’s request for a $66.7 million revenue increase.A critically important portion of the debate revolves around how Xcel will manage the financial implications of retiring its coal plants – specifically, the Allen Generating Station near Casselton and the Milton R. Young Station near Center – and transitioning to renewable energy sources. The outcome will determine how those costs are allocated between shareholders and ratepayers.
xcel intends to cease coal-fired generation by 2030, a move driven by environmental concerns and evolving energy market dynamics. The company argues that a prudent cost recovery mechanism is essential to ensure a reliable and affordable energy supply during the transition. Opponents, including the North dakota Public Utilities Commission staff and the Sierra Club, contend that Xcel should bear a greater share of the costs associated with decommissioning the plants and investing in new infrastructure.
“We want to make sure that North Dakota ratepayers aren’t left holding the bag for investments that may not be prudent,” stated a representative from the Public Utilities Commission staff during the hearing. The Sierra Club echoed these concerns, advocating for a faster transition to renewable energy and a more equitable distribution of costs.
Fedorchak indicated the commission expects to reach a decision relatively soon, with a final order anticipated within a few weeks. The commission’s ruling will have long-term implications for Xcel’s investment strategy and the future of energy production in North Dakota. This story was originally published on NorthDakotaMonitor.com.
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